12th Jun 2020 10:24
(Alliance News) - City Pub Group PLC on Friday said it is in an "excellent shape" to re-open estate and take advantage of growth opportunities in a post Covid-19 era, after reporting a drop in annual profit on lower margins and costs to impairments and investments.
Shares in pub operator were down 9.7%% at 83.10 pence each in London.
Chair Clive Watson said: "We will reopen with a reset, more efficient, streamlined business, reduced capital expenditure and our focus on the existing estate. We have a strong balance sheet not only to endure and prosper again, but also to take advantage of opportunities that arise."
For 2019, the company recorded pretax profit of GBP2.2 million, down 16% from GBP2.6 million a year ago. Stripping out exceptional items, share option charge, interest, taxation, depreciation and amortisation, pretax profit was up 4% to GBP5.3 million.
The company wrote down GBP1.9 million across a number of pubs as a property impairment charge in 2019 and invested GBP3.4 million into refurbishing and maintaining its existing estate.
Revenue in 2019 jumped 31% to GBP60.0 million, with like-for-like sales increasing by 1.7% year-on-year, against a tough comparable period following the World Cup and long hot summer in 2018.
City Pub said 2020 began well but growth plans were "immediately curtailed by Covid-19 and closure of estate in March"
"Given the continued uncertainty around timing of a full re-opening and customer behaviour, the group is not in a position to provide financial guidance at this stage," the company added.
The London-based company has not recommended a dividend for 2019 and is unlikely to resume dividend payments until trading is back to optimum levels.
By Tapan Panchal; [email protected]
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